A Guide to Financial Planning for Every Stage of Life

Article overview

• Financial planning is a continuous process that evolves with life stages, helping individuals adapt their goals, incomes and priorities, whether they’re just starting out, raising a family, entering retirement or facing unexpected events.
• Key strategies include building strong financial habits, merging finances with a partner, managing changing priorities like retirement or caregiving, and seeking tools or expert guidance for unique situations such as job loss, business ownership or windfalls.
• Regularly revisiting financial plans ensures they stay aligned with current needs, helping to maintain flexibility, prepare for uncertainties and confidently achieve long-term goals.

This article is the first in the “Financial Planning for Every Stage of Life” series.

Life rarely follows a straight path—and your finances are no exception. That’s why financial planning doesn’t only focus on one moment in time. It’s an ongoing process that grows with you, helping you adapt your goals, income and priorities as life changes.

Whether you’re just starting out, raising a family, entering retirement or navigating something unexpected, a flexible financial plan can help you stay steady. From everyday expenses to long-term goals, the right tools and guidance make it easier to adapt confidently as your needs evolve.

You’re starting your financial journey

Planning early can help you build strong financial habits and long-term savings. Understanding the basics of budgeting, building an emergency fund, and establishing a good credit history now can lay the groundwork for greater financial security and flexibility in the future.

And you don’t need a high income to begin, just consistency. Using free financial planning software or a spreadsheet can make it easier to track progress and set goals as you start saving.

Learn more in our guide to Financial Planning for Young Adults. 

You’re building a life with someone else

Merging finances is a big step, and it usually comes with new habits, shared priorities and more complex decisions. For couples who are newly married or growing their families, open conversations around budgeting, saving and aligning spending styles can help you feel more in sync.

Discuss how you’ll handle shared expenses and revisit your plan regularly. As your commitments grow, like buying a home or raising kids, emergency savings and life insurance may become essential parts of your financial plan.

Learn more in our guide to Financial Planning for Newlyweds and Young Families. 

You’re raising older kids or adjusting to an empty nest

At this stage, your financial priorities may shift toward retirement preparation, paying down debt or helping aging parents. You might also be managing college expenses, supporting adult children and learning how to be empty nesters.

As your spending changes, it’s a good time to review your financial plan. You may need to redirect savings or explore downsizing options. Minor adjustments here, such as revisiting insurance or refining your budget, can create more flexibility for what’s next.

Learn more in our guide to Financial Planning for Older Families and Empty Nesters. 

You’re planning for retirement—or you’re already there

Even after you stop working, financial planning continues to play a key role. A well-structured plan can help you manage a fixed income, coordinate withdrawals and budget for health care or other large expenses.

Unexpected costs, financial uncertainty or shifts in spending can also impact your long-term financial security. The right tools and guidance can help you adjust with confidence and feel more certain your money will last through this next chapter.

Learn more in our guide to Financial Planning for Retirees. 

You’re navigating events that don’t follow a timeline

Not every financial planning decision falls neatly into a life stage. Some events, such as starting a business, becoming a caregiver or dealing with a major health issue, can happen at any age.

These moments can reshape your goals, budget and responsibilities. Even if they don’t follow a predictable path, they still deserve attention and a flexible financial plan.

You’re starting a business or side hustle

Self-employment can offer flexibility and freedom, but it also brings financial unpredictability. Whether you’re freelancing, consulting or launching a full-fledged company, a clear financial strategy can help you stay grounded while growing your income.

A good first step is to separate personal and business finances. Open a dedicated bank account, track expenses closely and consider using financial planning software or a bookkeeping tool to stay organized. You may also need to estimate and pay quarterly taxes, and make independent plans for health insurance, retirement savings and other benefits typically provided by employers.

Self-employed individuals can set up a solo 401(k) or IRA. Business insurance is also important, especially if you work with clients or manage inventory. Some entrepreneurs also search for “financial planning near me” to connect with advisors, mentors or small business resources.

You’re facing a job loss or major career shift

A job loss or major career change—whether planned or unexpected—can shake your financial foundation. It often means rethinking priorities, adjusting your financial plan and finding ways to bridge the gap before you make your next move.

Take a moment to assess where things stand:

• How much do you have in emergency savings?
• What’s your plan for health insurance? You may need to look into COBRA, spousal coverage or marketplace plans.
• Can you receive unemployment benefits?
• Are there short-term income options, like consulting, freelancing or part-time work?

This kind of shift can also be a good time to revisit your goals and review any changes to your insurance, savings strategy or retirement timeline. A little planning now can help reduce financial stress and emotional spending, giving you more control over what comes next.

You’re becoming a caregiver

Providing care for a parent, partner or relative can be deeply meaningful—but it can also take a serious toll on your time, energy and finances. Many caregivers find themselves adjusting work schedules, covering medical costs or managing day-to-day living expenses.

Pay attention to how your current finances are shifting. Explore whether your loved one is eligible for Medicare, Medicaid or local assistance programs. You may need to reconsider your income expectations or adjust your long-term savings goals. Some caregivers explore financial planning services to help manage changing responsibilities and costs.

It’s also important to think ahead. Caregiving can also affect your retirement timeline and reshape your approach to insurance, long-term care and estate planning. Updating your financial plan to reflect these new realities can help you stay balanced as you take on more.

You’re part of a blended family or a second marriage

Blending families often means combining finances, which can become complicated. From supporting kids from previous relationships to managing shared expenses, smart family financial planning involves more than just who pays the bills.

As your situation changes, it’s important to review:

• Beneficiaries on life insurance, retirement accounts and pensions.
• Wills, powers of attorney, and guardianship plans.
• How you handle your household budgeting, including whether you want to keep accounts joint, separate or a hybrid.
• Long-term plans for college savings, inheritance or estate planning.

You may also be juggling different financial priorities or timelines across households. Talking openly about debts, income and long-term goals can help reduce friction and ensure everyone stays on the same page. A thoughtful financial plan can protect what matters and support your family’s future.

You’ve received a windfall

An inheritance, bonus or settlement can feel like a gift, but it brings new financial decisions. Without a plan, it’s easy to spend quickly and regret it later. However, consider transferring the money to a separate savings account so you have time to think clearly before making any major decisions.

From there, you can start mapping out your next steps:

• Cover any urgent needs, such as debt or medical bills.
• Set aside money for taxes (if the windfall is taxable).
• Revisit your current savings goals and retirement plan.
• Consider long-term uses like investing, paying off a mortgage or supporting a cause you care about.

This is also a good opportunity to connect with experts who offer financial planning services. A financial advisor, tax specialist and estate planner can help you see the possibilities of this windfall while keeping it aligned with your overall financial plan.

You’re facing a health event or disability

A major health change can shift your financial priorities overnight. It may reduce your income, increase your expenses and force hard choices about your savings or retirement timeline.

Take time to understand your health coverage and check with your employer about any leave policies or disability benefits. If you’re unable to work or are managing ongoing care costs, you may need to explore government programs, short-term disability or when to draw from your savings. Options like Social Security Disability Insurance (SSDI) or a Health Savings Account (HSA) can also help cover medical expenses.

This kind of shift is hard to plan for in advance. Financial experts can also help you prepare for the unexpected by setting up powers of attorney and medical proxies to ensure trusted individuals can access your records.

No matter where you are, revisit your plan regularly

Financial planning isn’t just about big transitions. Even during calm periods, aim to revisit your financial plan at least once a year to catch small changes or red flags before they become serious problems.

Set a reminder to check your budget, life insurance coverage and any new benefits or tax rules that may apply as you age or your family changes. Staying proactive helps ensure your plan always reflects your current needs.

Planning that keeps up with life

Your goals, challenges and responsibilities will continue to evolve, and your financial plans should adapt accordingly. When you’re ready, the right tools and support can help you stay ahead and feel confident as you face new life changes.